Novogratz: Dovish Fed Chair Nominee Could Trigger Major Bitcoin Rally

Galaxy Digital CEO Mike Novogratz believes Bitcoin could stage a sharp rally if the next US Federal Reserve chair turns out to be a monetary dove.

Key Takeaways:

• Mike Novogratz says a dovish Fed chair nominee could be the “biggest bull catalyst” for Bitcoin, potentially pushing prices toward $200K.
• He warned that such a pivot would come at the cost of U.S. financial stability but could trigger explosive crypto gains.
• Market reaction may remain muted until an official nomination is made, though analysts say the dollar faces downside risks.

Speaking during a YouTube interview with crypto investor Kyle Chasse, Novogratz pointed to the potential nomination of a pro-easing candidate to replace Jerome Powell as a pivotal moment for digital assets.

“That’s the potential biggest bull catalyst for Bitcoin and the rest of crypto,” Novogratz said.

He added that a dovish pivot, particularly if it involves aggressive rate cuts, could lead to a dramatic run-up in prices.

“Can Bitcoin get to $200K? Of course it could,” he said, suggesting such a scenario could spark a “blow-off top” moment in the market.

The Fed’s current chair, Jerome Powell, is set to complete his term in May 2026.

According to reports, former President Donald Trump is considering candidates like Kevin Hassett, Christopher Waller, and Kevin Warsh to replace him, each carrying different views on monetary policy. Waller, for instance, advocated for rate cuts as early as July this year.

Novogratz stressed, however, that such a scenario would come with consequences. “It would be really shitty for America,” he said, warning that Fed independence could be at risk. Still, the short-term impact on Bitcoin could be explosive.

“Gold skyrockets… Bitcoin skyrockets,” he predicted, should a hyper-dovish nominee be confirmed.

The conversation echoed broader concerns raised by market watchers. Daleep Singh, vice chair at PGIM Fixed Income, recently said that the makeup of the Federal Open Market Committee (FOMC) could change significantly post-2026.

Singh also flagged risks to the dollar, noting that the balance of risks was “skewed to the downside.”

Market reaction, according to Novogratz, may remain muted until such a nomination becomes official. “I don’t think the market will buy that Trump’s going to do the crazy, until he does the crazy,” he said.

The Fed’s first rate cut of the cycle, 25 basis points in September, was largely expected.

However, if the next chair accelerates that trajectory, it could realign investor flows toward crypto. As Novogratz put it, “It becomes a whole new conversation if that happens.”

Hex Trust CEO Alessio Quaglini believes US banks are on the verge of mainstreaming Bitcoin, pending regulatory clarity.

He predicts that within months, most American banks will offer custody, trading, and deposit services for Bitcoin, calling U.S. regulation the “global benchmark” for institutional adoption.

Founded in 2018, Hex Trust provides crypto custody, trading, lending, and staking services to institutions across Asia, the Middle East, and Europe.

With over 200 employees and a million end users via B2B deals, the firm is targeting $20 million in revenue by 2025 and considering a future IPO.

Quaglini also sees stablecoins as a disruptive force, potentially replacing the SWIFT system for cross-border payments.

Unlike US-listed crypto companies that rely on retail trading, Hex Trust’s strategy focuses on providing infrastructure for institutions and avoiding direct exposure to crypto market volatility.

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